USA, e-commerce and logistics
Shipping to the USA might seem daunting, but it doesn’t have to be.
A well informed approach can help you seize the opportunity to connect with new consumers and increase revenue.
Why USA?
The U.S. is the world’s largest national economy and leading global trader. Americans generate and earn more than twenty percent of the world’s total income 1.
The good news is a significant portion of that income is now being spent online. In fact, online shopping has become so common that over three quarters of the country have shopped online at some point in their lives 2.
These figures are set to increase further in the future with retail e-commerce sales forecast to grow by nearly eleven percent between 2023 and 2027 3.
1. Stats taken from https://www.statista.com/topics/2477/online-shopping-behavior/#topicOverview
The e-commerce landscape
Over the past decade, the e-commerce market in the USA has been constantly evolving and has now grown to be one of the largest in the world. There has never been a better time to venture into the U.S. market. Retail e-commerce sales are forecast to grow at a fast pace in the coming years, going from roughly 875 billion USD in 2022 to over 1.3 trillion USD in 2025 4.
Opportunities
The Christmas holidays are a busy time for online e-commerce shopping. Since 2019, over half of U.S. shoppers have elected to do their holiday shopping via e-commerce rather than in store 5. Black Friday and cyber Mondays are also major times to connect with potential new buyers.
The rise of e-commerce revenue in the USA 2018-2028
Revenue of the e-commerce industry in the U.S. 2018-2028
Revenue in billion U.S. dollars
Source: https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast
Logistics
The first thing to consider when preparing a package to be delivered to the USA is the journey it will take. Unlike domestic orders in this country that are delivered from one postal hub to another via road, a parcel going across the U.S. might transit through trains, planes, lorries or boats.
The essentials
| Transit Times | 4-7 working days |
| Maximum Dimensions | Length: 66cm max Height: 43cm max Width: 43cm max Length + Girth ≤ 125cm |
| Maximum Weight | 25lbs / 11kg |
| Maximum Container Value | USD 3,000 |
| Low-Value Limit | USD 800 |
| GST | 0% |
| Duty | Variable based on product; applicable on items over USD 800 |
| DDP Available | Yes |
| DDP Fee | TBC |
| Clearance Fee | TBC |
Good to know
The low value threshold for the USA is USD 800. Anything above the low value threshold must undergo formal clearance. These items will also be subject to duty/sales tax.
Remember that liquids and powders require special packaging. It’s also worth checking the delivery times, as these can vary for different parts of the country.
What our experts say:
“Consumers in the USA are becoming increasingly more confident in purchasing their products from abroad, and there is a lot of untapped potential there for UK e-commerce businesses.”
Simon Perkins, Commercial Director, SAMOS.
Keep in mind
An international seller who makes sales in the U.S., regardless of whether they are based there or not, may have economic nexus. This means that if you make a certain dollar amount of sales in a state, or a certain number of transactions with buyers in that state, then you are required to collect sales tax in that state.
About half the states in the U.S. currently have economic nexus laws. You can read more about each US state’s economic nexus laws here.
Example:
In Kentucky, any international seller who has made more than $100,000 in sales in the state in the previous or current calendar year, or who made more than 200 sales transactions in the state in the previous or current calendar year, is required to comply with Kentucky’s sales tax laws.
Compliance means registering for a Kentucky sales tax permit and collecting sales tax from any buyers in Kentucky.
To find out more about how SAMOS can help you achieve fast and cost-effective deliveries to the U.S.A get in touch today
1 https://ustr.gov/issue-areas/economy-trade
2 https://www.statista.com/topics/2477/online-shopping-behavior/#topicOverview
3 https://www.statista.com/topics/2477/online-shopping-behavior/#topicOverview
4 https://www.statista.com/topics/2443/us-ecommerce/#topicOverview
5 https://www.statista.com/topics/2477/online-shopping-behavior/#topicOverview